Arranging Exhibitions for Promoting Business of Gems and Jewellery Is a Charitable Activity | ITAT
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Case Details: Deputy Commissioner of Income-tax vs Gem And Jewellery Export Promotion Council - [2024] 166 taxmann.com 169 (Mumbai-Trib.)
Judiciary and Counsel Details
- B.R. Baskaran, Accountant Member & Anikesh Banerjee, Judicial Member
- Nitesh Joshi, Adv. & Ashwin Kashinath for the Appellant.
- Dr. Kishor Dhule, CIT DR for the Respondent.
Facts of the Case
The assessee, a company incorporated under section 25 of the Companies Act, 1956, sponsored by the Ministry of Commerce, Government of India. It is a charitable organisation registered under section 12A since 1976. The assessee is carrying out its activity strictly in conformity with its objects. The assessee filed its return of income for the relevant assessment year and claimed exemption under section 11.
During the assessment proceedings, the Assessing Officer (AO) noticed that the assessee conducts exhibitions all over the world to promote the jewellery and the business of gems and jewellery. No sale occurred during the exhibition arranged by the assessee. Considering the financial report, the AO held that the assessee was engaged in various commercial activities and denied the exemption under section 11.
On appeal, CIT(A) deleted the additions made by AO, and the matter reached the Mumbai Tribunal.
ITAT Held
The Tribunal held that the assessee was a facilitator and arranged the exhibition for its members to develop the business and trade in India and outside India. There was no deviation of the assessee’s main object, which was covered by section 2(15).
The business of trading, sale and purchase was duly restricted during the exhibition. The revenue was unable to establish that the assessee was doing any business transactions during its activities.
Accordingly, the assessee was eligible for the benefit of exemption under section 11.
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